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Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve its ability to remove tough stains from ceramic tiles. The company's contribution margin is 25 percent and its current break-even point is $409,200 in sales revenue. Purchasing the new equipment will increase fixed costs by $9,500. Required: 1. Determine the company's current fixed costs. 2. Determine the company's new break-even point in sales. 3. After the purchase of the equipment, how much revenue does the company need to generate a profit of $120,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the company's current fixed costs. Fixed cost Required 1 Required 2 Required 3 Determine the company's new break-even point in sales. Break-even point in sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 After the purchase of the equipment, how much revenue does the company need to generate a profit of $120,000? Note: Round your answer to the nearest whole dollar. Target sales Tommy's Tile Service is planning on purchasing new tile cleaning equipment that will improve its ability to remove tough stains from ceramic tiles. The company's contribution margin is 25 percent and its current break-even point is $409,200 in sales revenue. Purchasing the new equipment will increase fixed costs by $9,500. Required: 1. Determine the company's current fixed costs. 2. Determine the company's new break-even point in sales. 3. After the purchase of the equipment, how much revenue does the company need to generate a profit of $120,000? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the company's current fixed costs. Fixed cost Required 1 Required 2 Required 3 Determine the company's new break-even point in sales. Break-even point in sales Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 After the purchase of the equipment, how much revenue does the company need to generate a profit of $120,000? Note: Round your answer to the nearest whole dollar. Target sales
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Given Contribution Margin 25 Break Even Point Sales Revenue 409200 Increase i... View the full answer
Related Book For
Managerial Accounting Creating Value In A Dynamic Business Environment
ISBN: 9781264100699
13th Edition
Authors: Ronald Hilton, David Platt
Posted Date:
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